On July 5, 2024, the Institute of Chartered Accountants of India (ICAI) addressed a letter to the Central Board of Direct Taxes (CBDT) highlighting several issues faced by taxpayers regarding the accessibility and accuracy of Form 26AS, TIS, and AIS. These issues have posed significant challenges for taxpayers in preparing and filing their income tax returns for the assessment year 2024-25. The ICAI, as a key stakeholder in fostering a robust relationship between taxpayers and the Department, aims to ensure these challenges are addressed promptly to facilitate seamless tax compliance.
Key Issues Highlighted
One major issue highlighted is the difficulty in accessing Form 26AS, TIS, and AIS due to technical glitches in the income-tax e-filing portal. Taxpayers often face discrepancies between figures in these forms, particularly in joint income cases, leading to unnecessary scrutiny notices. Additionally, the limited response options available in AIS/TIS hinder taxpayers from accurately reflecting their specific situations, necessitating the inclusion of an “Others” option for detailed explanations and supporting documents.
Technical and Data-Related Challenges
The ICAI also pointed out the delayed update of responses in TIS, causing inconsistencies between the information provided by taxpayers and what is reflected in the forms. Furthermore, technical issues such as continuous buffering on the e-filing portal, mismatched pre-filled data in income tax returns, and difficulties in reflecting dividend income in Schedule OS for business income taxpayers have been significant hurdles. These technical glitches not only complicate the filing process but also delay the submission of accurate returns.
Additional Concerns and Recommendations
Taxpayers have reported error messages during ITR filing and non-receipt of OTPs for authentication, further complicating the process. There are also problems in downloading the acknowledgement of filed ITRs, which are crucial for validating compliance. The ICAI urges the CBDT to address these issues promptly to ensure a smooth and efficient tax filing process, ultimately aiding taxpayers in meeting the statutory deadline and reducing undue stress and complications.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
ICAVDTC/2024-25/Rep-6 Dated: 5th July 2024
Shri Raman Chopra,
Joint Secretary (TPL)-1,
Central Board of Direct Taxes,
Ministry of Finance,
Government of India,
North Block,
New Delhi-110001,
Respected Sir,
Sub: Concerns in relation to Form 26AS/TIS/AIS and in e-filing the ITR Forms
The Institute of Chartered Accountants of India (ICAI), being a partner in nation building, plays a pivotal role in strengthening the relationship between the taxpayers and the Department; by bringing to the notice of the Department, genuine hardship being faced by the taxpayers so that the same can be resolved timely for effective tax compliance.
In this direction, we bring to your kind notice issues faced by taxpayers with respect to accessing Form 26AS/TIS/AIS and preparing and filing their returns of income.
As you are kindly aware, section 139(1) of the Act provides for the statutory timeline of 31st July, 2024 for filing of returns of income of for the A.Y. 2024-25 of individuals, HUFs, firms who are not subject to tax audit. Many of the taxpayers are facing difficulty in relation to Form 26AS/AIS/TIS due to glitches in the income-tax e filing portal.
Concerns/issues faced by the taxpayers
The issues faced by the taxpayers are –
1. Difficulty in accessing Form 26AS/AIS/TIS and discrepancy between figures in the statements – Due to glitches in the income-tax e-filing portal many taxpayers are facing difficulty in accessing Form 26AS/AIS. Sometimes there is variance in figures of the same nature in TIS and AIS. Also, joint income gets reported in the statement of both joint account holders, leading to scrutiny notices in spite of taxpayers intimating the same on time.
2. Limited Response Options in AISII’IS – Currently, the AIS/TIS portal provides taxpayers with a set of options to respond to the information reflected in these statements. Sometimes, these options may not be adequate to accurately capture the taxpayer’s specific situation or response. There may be a residuary option, “Others”, which allows taxpayers to provide detailed comments and explanations. This option may also enable taxpayers to upload supporting documents and attachments to substantiate their responses.
3. Delayed Update of Responses in TIS- Many taxpayers have reported that even after updating their responses in the AIS, the corresponding changes do not appear in the TIS promptly.
4. Technical Glitches on the Income-tax e-filing Portal: There are some technical glitches in the income tax e-filing portal such as continuous buffering due to which there is difficulty in completing the form filling.
5. Mismatch in Pre-filled Data: There are instances of mismatch in pre-filled data in the income-tax return and the salary, interest income, TDS etc. as per Form 26AS.
6. Dividend Income Reflection in Schedule OS: There is some difficulty in the reflection of dividend income in Schedule OS for taxpayers having business income. The current utility mandates that the income be reflected and then reduced from business income before showing it in Schedule OS. The utility may be updated to allow for the correct reflection of dividend income in Schedule OS without requiring it to be first included and then reduced from business income.
7. Error Messages during ITR Filing: Taxpayers are reporting that error messages appear while attempting to file their ITRs, which delay the successful submission of returns.
8. Non-Receipt of OTPs for Authentication: There have been instances where the One Time Password (OTP) required for authentication is not received promptly or at all, leading to failed attempts in verifying and submitting the return.
9. Difficulty in downloading filed ITR Receipts: Some taxpayers are also facing problems in downloading acknowledgement of ITRs filed, which serve as proof of submission of ITR and are essential for taxpayers to validate their compliance.
Income tax return filing should be permitted round the year till next 31stMarch of A.Y., without late fees or penalty, except for interest provisions for less taxes paid as per relevant provisions for advanc tax payment. This round the year will resolve many issues of return filing, software and related sites,and more importantly stress.
TDS Claimed in ITR duly checked and reconciled with TDS CERTIFICATES, FORM 26 AS , AIS TIS in spite of this E Filling Portal is showing MISMATCH OF TDS.
Yes, I have faced all the difficulties mentioned above while filing my ITR for FY24. Even some options selected earlier are automatically getting changed after moving ahead resulting in to reflection of error at later stage. Reporting of Dividend income in OS was resulting into error, so finally filed the ITR with Error (which was allowed by the system). Even after selecting 80D deduction it does not appear in final computation. The e.filing system needs immediate rectification.
Facility to download Income Computation Statement after filing ITRs online should be made available in the utility of ITR filing.
The Auto Populated Dividend income and TDS particulars have vanished from TDS 2. Selected Schedules like EI 80DD 80 G disappear. Removed schedules like 80 IA 80IB 80 IC/IE keep appearing unnecessarily Speculative Income should be delinked from Business and profession.
last date of filing the return might have been requested as 30/9/2024 if not the year end viz. 31/3/2025. The date 31/7/2024 creates tension for all.
True, this need to be resolved else return filing date to be extended, facing lot of challenge on e-filing website.